Aer Lingus confirms cutbacks

Aer Lingus said today it would report a small operating profit for the second half of 2009 and confirmed it would reduce capacity at its Gatwick base.

The airline said cost-cutting measures introduced last year, including the removal of long-haul aircraft and route cancellations in November, had delivered better than expected yields in the final six months of the year.

The airline said it would continue to focus on tight capacity management to improve yields as demand would remain soft in the first half of 2010.

Aer Lingus confirmed it would downsize its operations significantly at Gatwick airport in London, reducing capacity at the base from five to three Airbus A320 aircraft which will serve routes to Malaga, Dublin, Knock and Cork.

The airline said weak consumer demand was to blame for the decision. The Gatwick base, which is loss-making for the carrier, was opened less than a year ago.

Aer Lingus has also deferred two A320 aircraft thjat were due to be delivered in October and November 2010 to April and May next year.

The company is currently negotiating a cost-cutting plan with staff that it hopes will save €97 million a year.

The airline carried a total of 766,000 passengers in December 2009, a rise of 9 per cent compared to the same period a eyar earlier. However, the increase was mainly seen in short haul passengers, with a 13.2 per cent increase during the month to 693,000 passenger, while long-haul routes carried almost 20 per cent fewer travellers at 73,000.

Rival airline Ryanair yesterday dismissed rumours that it was planning a new takeover bid for the carrier. Chief executive Michael O'Leary said it was "highly unlikely" the company would consider it unless the Government was in a position to sell its stake in Aer Lingus.

Share prices in Aer Lingus rose 7.9 per cent to 68 cent on the Dublin market this afternoon.